My 2 cents would say that it probably can't be insured in it's current condition.  

They should also be performing a thorough move-out inspection and even a mid lease inspection so you can see the condition of your property.

Capex will be contingent on condition of property and how long you plan to own.  

It's in a nice area and will prob sell high even in this condition.

Most systems don't deliver the efficiency that they claim because the test conditions are so different from installed conditions (SEER will be replaced with SEER2 that uses more realistic tests) and most systems are oversized.

Not that my opinion matters, but I believe rehabbing old homes to the condition they used to be in while adding modern fixtures so that families can live in them is worth doing. 

We would greatly appreciate any input from the community regarding current market conditions, potential for income, and ultimately, whether this sounds like a good deal or a bad deal.  

I recently started negotiations to bring the offer to $695K due to the condition.

Maybe this one is in slightly better condition but can't be too sure.

It's probably worthwhile if the furniture they supplied is not in good condition.